PARTNER FORUM - SAS NORDIC PARTNER FORUM ... Optimization Real-time Terrorism Discovery Analytics ... • Seek new opportunities outside the confines of the traditional

Copyright © SAS Inst itute Inc. A l l r ights reserved.

SAS® NORDIC PARTNER FORUM

PARTNER FORUMFraudsters ♡ the Digital Economy


SAS® USER FORUMSWEDEN 2017

What’s Hot (in fraud analytics)

Phased roll-outs

Insiders

Optimization

Real-time

Terrorism

Discovery Analytics

Digitalization

Cost reduction


The Digital Economy refers to an economy that is based on digital computing technologies.

The Digital Economy is also sometimes called the Internet Economy, the New Economy, or Web

Economy.

Increasingly, the “Digital Economy" is intertwined with the traditional economy making a clear

delineation harder.



94.6%

96.3%

92.2%

95.9%

98.3%

100.6%

Percentage of Population – Internet Users 31st March 17

Source: Internetworldstats.com


• New product apps• Checking status• Ordering currency

• New policies• Notifying claims

• Tax returns• Applying for benefits

• Online casinos• Lotteries



Many businesses and public bodies are embarking on digital transformation programs to fundamentally change their business

The Digital Impact

• Move beyond just a distribution channel to incorporate a range of digital technologies

• Seek new opportunities outside the confines of the traditional business model

• Map out and manage the customer journey

Digital Transformation Programs



Digital Transformation Programs

‘Managethe Customer Journey’

‘Enrichingthe customer experience’

‘An outside-in view of the organisation’

‘A customer-centric view of the organisation’

‘Lower cost servicing’ ‘Scalable’ ‘Adaptable’ 24x7x365



Fraudsters Digital

‘Managethe Customer Journey’

‘Enrichingthe customer experience’

‘An outside-in view of the organisation’

‘A customer-centric view of the organisation’



Fraudsters Digital

The adoption of digital significantly removes the ability for ‘human interaction’, both at new business stage and during the claims process.

Fraud analytics now becomes your main line of defence





Insurance - New Business

• Testing the boundaries of the insurer

• Modifying new business quotes to reduce premium or be accepted

• Ghost broking

Insurance - Claims

• Testing the boundaries of the insurer

• Claims exaggeration or invention

• Recycling of photos

• Recycling statements of incident

The rise of the

Armchair Fraudster?

Fraudsters Digital



Real time fraud analytics can help automatically identify potential fraudsters:

• At inception of the digital transaction

• Along the digital transaction

• Chasing the money

Allowing the insurer to route the potential suspicious cases into a work stream for more thorough investigation - most likely by a human

FraudstersDigital

Fraudsters Digital



Scandinavian Defense



Real-Time Fraud AnalyticsEnd-to-End Solution

• Alert suppression

• Modification of rules

• Model management

• Champion challenger

• Alert queue management

• Workflow analysis

• Case reporting

Management

Self administered

• Layered alert ranking

• Tailored workflow

• Easy to use web based interface

• Advanced query of integrated data

• Complaints system integration

• Case management integration

Investigation

Taking action

• Business rules

• Anomaly detection

• Predictive models

• Text mining

• Database searches

• Social network analysis

Detection

Unique hybrid approach

• Structured & unstructured data sources

• Batch or real time processing

• Data cleansing

• Data integration

• Advanced network linking

• Text mining

Data

It’s all in the prep




• Structured & unstructured data Sources

• Real time processing

• Data cleansing

• Data integration

• Advanced network linking

• Text mining

ManagementInvestigationDetectionData

It’s all in the prep

Risk Factor:Data Quality

Solution:SAS Data Quality with Quality Knowledge Base

Vocabu-laries

Gram-marsPhonetic

Algo-rithms

Fuzzy Matching

Algo-rithms

Parsing Algo-rithms

SchemesRegex Algo-

rithms

Case DefinitionsGender Analysis

Definitions Identification

Analysis DefinitionsLocale GuessDefinitions

Match Definitions Parse DefinitionsPattern Analysis

DefinitionsStandardization

Definitions

Critical and often overlooked




ManagementInvestigation

• Business rules

• Anomaly detection

• Predictive models

• Text mining

• Database searches

• Social network analysis

Detection

Unique hybrid approach

Data

Analytics

Event

Entity

Network

Levels of detection




• Triage

• Layered alert ranking

• Tailored workflow

• Easy to use web based interface

• Advanced query of integrated data

• Complaints system integration

• Case management integration

Taking action




Real-time Fraud AnalyticsEnd-to-End Solution

• Alert suppression

• Modification of rules

• Model management

• Champion challenger

• Alert queue management

• Workflow analysis

• Case reporting

Self administered


Visual scenario configuration

Ad-hoc, in memory reporting and exploration

Concise and efficient investigation

Empower the business user



Fraudsters ♡ the Digital EconomySummary & Main Take-Aways

• The Digital Economy is here and will continue to evolve

• More businesses and public organisations will embark on Digital Transformation Processes – for right reasons

• Fraudsters are embracing digital and looking for the path of least resistance

• Businesses and public organisations MUST build Real-Time Fraud Analytics into their DTPs

• It remains….an ongoing journey


Thank You

Documents

PARTNER FORUM - SAS NORDIC PARTNER FORUM ... Optimization Real-time Terrorism Discovery Analytics ... • Seek new opportunities outside the confines of the traditional